Option data indicates expiry above 9350: Angel Broking

Views of Mr. Jay Purohit (Technical and Derivative Analyst, Angel Broking):

"For the third consecutive session, the Nifty opened with an upside gap and continued with its positive momentum. Today, we witnessed a sharp decline from new record highs in the penultimate hour; but, the corrective move was bought into immediately. As a result, the Nifty concluded the session with gains of half a percent over its previous close. This is the third successive day wherein good amount of fresh longs were seen in both Nifty as well as BankNifty. Rollover in Nifty is on the lower side as compared to its last month's rollover, while it's on the higher side in BankNifty.

In Nifty options, huge short covering was seen in 9300 to 9200 call options for yet another day. On the other hand, 9350 and 9300 put options added good amount of positions, indicating base shifting higher for the Nifty for current series. In May series, 9600 and 9500 call options added healthy positions in today's session; while, traders have initiated huge positions in 9300 and 9200 put options.

Today, FIIs have formed mixed positions in index and stocks futures, but its observed that the longs are more than shorts. At the same time, they bought some call options and went short on index puts (though quantum is low). Considering overall derivative activity, the Nifty is poised to conclude the April series above the 9350 mark. Thus, traders are advised to remain positive and one should take a punt by using any intraday correction below 9350 to initiate fresh long in 9350 call option for the expiry day."

Source : Equity Bulls

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